County residents mixed on liquor privatization plan

Pennsylvania Gov. Tom Corbett, center, stands with Rep. Mike Turzai, R-Allegheny, right, and a group of colleagues as he addresses a news conference in Pittsburgh, where he announced his plan to privatize the liquor system in Pennsylvania on Wednesday, Jan. 30, 2013. Corbett said the plan commits $1 billion in proceeds from the process to education funding. (AP Photo/Keith Srakocic)

The money would be used to create what Corbett called a “Passport for Learning,” or block grant funding that would be distributed to public schools.

Jim Scanlon, superintendent of the West Chester Area School District, said the district would like to see more details about where the money would be coming from.

“We have seen (block grants) from the state in the past, they come and go,” Scanlon said.

State Sen. Andy Dinniman, D-19th of West Whiteland, said he was disappointed the governor’s plan to channel the money into education would not direct it to expenses such as pensions, to poorer school districts or to property tax relief. He said there are about three dozen school districts in the Commonwealth that could essentially be bankrupt come May.

Dinniman noted that all special programs the grants would fund would come to an end once the money is gone.

“It seems to me that in poorer areas liquor stores will be popping up on every other corner while schools are closing on the other corner at the same time,” Dinniman said.

“I am most pleased to see that the governor has made privatization of the liquor stores a top priority for this legislative session in 2013-14,” Milne said in a prepared statement. “As a staunch supporter of free enterprise, I look forward to the chance to move this initiative forward.”

Milne said the new system will foster choice and convenience, which is a top priority for residents who have been polled on the issue.

“Ultimately, privatization would bring an influx of cash into the commonwealth at a time when it is so desperately needed,” Milne said. “The move would also cut down on long-term costs such as employee pensions in the state store system and store rent into the future, ultimately saving money.”

Bob Spaziani, owner of Spaz Beverage Co. in West Goshen, said he thought the governor was oversimplifying the issue.

Spaziani said officials need to address what will happen to the employees of the state stores and the leases on the properties.

Should the licenses be auctioned off, he said is may be a problem for beer distributors who want to expand but who would not be able to afford the licenses. Another problem Spaziani highlighted was how the stores would be monitored in regard to preventing sale to minors as they would be accessed easier there than at a state store or beverage distributor.

“A lot of people think that by getting rid of state stores everything is going to be cheaper to compete with Maryland and Delaware, I don’t see that,” Spaziani said.

Spaziani said he and other owners in the Malt Beverage Distributors Association of Pennsylvania are seeking reform that would allow them to sell beer in quantities of less than a case.

Representatives of Wegmans Food Markets, which sells beer in its Chester County markets, said the company is waiting to hear more details on the governor’s proposed plan.

“We haven’t seen specifics,” said spokeswoman Jo Natale. “But we support any effort that would give customers greater convenience and choice.”

Dinniman said he would like to hear all the arguments and talk out the issue because there are a lot questions that need to be addressed. He said Harrisburg will need to address funding that will be absent from the budget once the sales go through.

Dinniman added he wants to know how the privatization will affect small businesses and if the licenses will be sold at a price they can afford, allowing them to expand.

In college towns like West Chester, which deal with alcohol related problems, Dinniman questioned whether the increased convenience would stress ongoing problems.

“In a college town we have these problems, we have to ask the legitimate question of will this add to those problems, will it add to DUI,” Dinniman said.

About the Author

Jeremy Gerrard is the Daily Local News' reporter covering the West Chester area and local school district. Jeremy is a Chester County native and a graduate of Auburn University. Reach the author at jgerrard@dailylocal.com
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